West Bengal

2 West Bengal –Emerging growth engine of India West Bengal Booming Economic Powerhouse • 4th largest economy in India, with a population of 91.3 milli...

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West Bengal Emerging growth engine of India

September 2016 1

West Bengal – Emerging growth engine of India Booming Economic Powerhouse •

4th largest economy in India, with a population of 91.3 million

GSDP: ~US$ 137 billion (2015-16) at current prices

Growth rate: GVA 12.02% for 2015-16 (AE)

Strategic Location & Rich Cultural Heritage


Excellent domestic and

~100% villages electrified

3rd largest road network, 2nd Largest metro network

Plug-n-play Industrial Infrastructure: Numerous growth centers and industrial parks (existing and proposed)

Upcoming 6 new Theme townships

Upcoming Amritsar-Kolkata Industrial Corridor (AKIC), covering ~2,000 KM

West Bengal

State Capital: Kolkata (One of the 4 major metropolitan cities of the country) Spoken languages: Bengali, Hindi, English and Nepali Literacy rate: 77.1%

• •

Gateway to South-East Asia and North-East India Well connected with the booming hubs of Asia such as Singapore, Malaysia Kolkata is referred as the “Culture/literary capital of India” Land of Mother Teresa, Rabindranath Tagore, Satyajit Ray and many more

Strategic Location international connectivity

AE: Advance Estimates 2

Excellent Connectivity – Domestic & International • Population base covered corresponds to more than 1/4th (~ 27.5 %) of India’s total population

• Caters to nearby states – Bihar, Jharkhand, Odisha, Chhattisgarh, and North-East India (including Assam) Nepal

Bhutan Bhutan North-East Bihar


Bangladesh West Bengal



• Considerable chunk of population base (0.2 Billion) resides in neighboring countries viz. Nepal, Bhutan, Myanmar & Bangladesh • Beyond these, whole of South-East Asia is easily accessible


• Vast road network of 3,15,404 KM • ~4,000 KM of railway tracks • 950 KM of Coast Line • Leading in the country in terms of spread, density, reach, etc. of National Inland Waterways Indian States West Bengal

• 2 International Airports – Kolkata and Bagdogra

Neighboring Countries

Source: Census of India 2011, Worldometers 3

Leading growth engine of the country 1



Largest in India’s Power distribution, quality and availability

Country’s highest bank credit flow to MSME sector of US$ ~15 billion in the last 5 years

Source: Gartner

Source: State Budget



Highest producer of vegetables in the country

Kolkata is the first metro city in the country with Wi-Fi connectivity on 4G

Source: Department of Food Processing, WB

Source: Trak.in




Second largest in terms of number of MSME enterprises (~3.7 million enterprises)

Second in Tea production after Assam. State is the land of famous Darjeeling Tea

Third largest in India in mineral production accounting for about 1/5th of total mineral production

Third largest in terms of road coverage across the country

Source: Ministry of MSME

Source: Tea Board of India

Source: IBEF

Source: MoRTH


Rapidly improving governance – Unparalleled financial management in last 5 years




Tax Revenues State tax revenue more than doubled from to ~US$ 6.4 billion in 2015-16 from 2010-11

GSDP At current prices State GSDP in 2010-11 ~US$ 69 billion has doubled in 201516 to ~US$ 137 billion.

Expenditure on Physical Infra. Expenditure on Physical Infrastructure increased 4 times over 2010-11 to ~US$ 1.09 billion in 2015-16.




Credit Linkages to SHGs

Expenditure on Social Sector

Credit linkage to Self Help Groups (SHGs) has gone up more than 5 times from ~US$ 60 million in 2010-11 to US$ ~310 million in 2015-16.

State Plan Expenditure in Social Sector in 2015-16 increased 4.5 times over 2010-11 to ~US$ 4.6 billion.

Expenditure on Agri Sector Expenditure in Agriculture and Agri-Allied Sector registered a 7 fold increase over 2010-11 to ~US$ 3.5 billion in 2015-16.

Source: State Budget Speech 2016 5

Key initiatives/policies implemented on a large scale West Bengal Investment & Industrial Policy 2013 West Bengal State Support for Industries Scheme, 2013

State Policy on Public Private Partnership (PPP), 2012

Policy on Information & Communication Technology, 2012 ICT Incentive Scheme, 2012

MSME Policy, 2013-2018

Township Policy

Textile Policy, 2013-2018

West Bengal Incentive Scheme, 2015 for Tourism Units

Design Policy, 2016

Policy on Co-generation & Generation of Electricity from Renewable Sources of Energy, 2012

West Bengal Fisheries Investment Policy 2015 in Fisheries Sector

Start-Up Policy, 2016-2021


Emerging Startup culture in the state • Start-Up Policy 2016-2021: — Entrepreneurship Development Centre Network (EDCN) created in association with universities and leading higher education institutes

Citizen centric e-Governance & mobileGovernance

NASSCOM Start-up Warehouse: For budding entrepreneurs

4 Green Cities to be developed: New Town, Salt lake, Haldia, Durgapur

Emerging satellite IT Hub

2 Electronic Manufacturing Clusters (EMCs) upcoming

Analytics City at Kalyani

Fully Wi-Fi Metro & Railway Station and other city Locations

10 existing IT Parks and 2 Hardware Parks upcoming

— Digital platform startupbengal.in launched to connect all the ecosystem stakeholders — In partnership with state government, incubation Centre set up by Nasscom1: • Already incubated 23 start-ups in 2 batches • 3rd batch with 7 companies is underway • Sector agnostic MSME Venture Capital Fund set up with a corpus of INR 200 Crore

Source 1: http://www.business-standard.com/article/economy-policy/west-bengal-getting-start-up-friendly-nasscom-116071500901_1.html 7

Paradigm Shift in Labor Policies • No Bandh: State moved to a ‘No Bandh’ (meaning there are no strikes/ lockouts) regime to ensure that the companies, businesses, offices and public are not disturbed and to ensure a disciplined work atmosphere in the state.

Key Initiatives

E-based Employment Bank

Online application for Factory License

Single Inspection strategy

Grievance redressal mechanism

• Zero Mandays Lost: Man‐days lost drastically reduced in from 6.5 million in FY 2010‐11 to 5,200 to almost nil in 2015-16 • Plethora of new initiatives: Additionally the State has taken a slew of initiatives that is heralding new era in labor management

Time bound services under Right to Services Act

Source: Annual Report Labor in West Bengal 2014-15 8

Industrial promotion assistance – Incentives available

• • •

Large scale industries


IT Industry

Investment Industrial Policy West Bengal, 2013

West Bengal MSME Policy, 2013-18

West Bengal ICT Incentive Scheme, 2012

Reimbursement of 80%-90% of VAT paid for a period ranging from 815 years Reimbursement of CST paid for a period of 3 years Waiver of Electricity Duty Incentive linked with employment generation

Stamp Duty Exemption

Waiver of Land Conversion Fee

Anchor Unit Subsidy

Financial assistance towards Patent registration

Tax Holidays

Customized packages for mega projects

State Capital Investment Subsidy

State Capital Investment Subsidy

Interest Subsidy on Term Loan

Interest Subsidy

Waiver of Electricity Duty, Power Subsidy

Training Subsidy

Waiver of Electricity Duty

Subsidy for employment generation

Employment Generation Subsidy

Subsidy for Quality Improvement

Subsidy on Patent Registration

Refund of Stamp Duty & Registration Fees

Incentives for women, minorities, SC/ST and Self Help Group (SHG)

Bouquet of additional incentive for startup companies.


Initiatives of government for improving ease of doing business Business Process Reengineering - Simplified Tax Regime and e-Governance towards improved service delivery

Simplified registration to get incentives for industries - No of documents required for Registration Certificate (Part-I) reduced to 7 from 20; for Part-II, to 8 from 16

Mandatory E-registration - Only state to have made eregistration mandatory along with introduction of dematerialized Registration Certificate.

Single Window Service under Shilpa Sathi for large industries and MSME Facilitation Centers (MFC) in each district for MSMEs

Single Tax ID - One of the three States, where single Tax ID (Registration number) is allotted to cover registration under various tax laws such as VAT, CST, and Professional Tax E-Sales Tax Deduction at Source (TDS) Service

Online property registration application and payment

Digitization of land records

Quick disposal of VAT refund

Simplification of regulatory burden initiated for environmental procedures

Clear timelines for connections of basic utilities defined

E-Way bill - Introduction of on-line generation of a single document dematerialized waybill

E-filing Service center and Helpline number

WBIDC to act as Single Window for all clearances for Private Equity/Venture Capital Players


Major Investment Activity in the region Till 2015, over INR 843 Crore have been invested by PE firms, angel funds, start-ups, VCs, and others after current government came to power1 Top Active Funds in West Bengal

Top Active Funds in West Bengal


KKR India Advisors Pvt. Ltd.

Active investments in both Public and Private companies


Sequoia Capital India Advisors Pvt. Ltd.


Blackstone Advisors India Pvt. Ltd.


ChrysCapital Investment Advisors India Pvt. Ltd.

Companies’ turnover ranging from INR 56 billion to INR 10 million • Simplex Infrastructures Ltd.


Citi Venture Capital International


Bain Capital


India Value Fund Advisors Pvt. Ltd.


India Equity Partners Fund Advisors Pvt. Ltd.


Everstone Capital Management

10. Baring Private Equity Partners India Ltd. 11. CLSA Private Equity Management Ltd.

• Magma Fincorp Ltd. • Hindusthan National Glass and Industries Ltd. • Himadri Chemicals & Industries • Jai Balaji Industries Ltd. • Jay Shree Tea and Industries Ltd. • Khadim India Ltd.

Top Sectors attracting Investments

12. Aavishkaar Venture Management Services Pvt. Ltd.

13. Adharshila Venture Capital Fund Ltd. 14. AGI Services Ltd. 15. Fairwinds Private Equity 16. Tano India Advisors Pvt. Ltd.

• Infrastructure: Construction & Engineering • Healthcare • Retail

• Iron and Steel • Financial Services • Education

Source 1: http://economictimes.indiatimes.com/small-biz/startups/startups-private-equity-firms-invested-rs-843-crore-in-west-bengal-after-mamata-banerjee-came-into-poweramit-mitra/articleshow/50743368.cms 11

Bengal, a hot bed of opportunities – Some upcoming major investments HPCL to set up Asia's biggest LPG bottling plant in WB

Binani Group firms up plans to invest INR 10K Cr in Bengal

Bhor Sagar Port

• HPCL is setting up a 250 TMT p.a., 72-head carousel, capacity bottling plant at Panagarh, WB.

• Co has lined up investment in cement, power and infrastructure, including ports.

• Proposed Deep Sea major port with capacity to handle over 50 MMTPA

• Will cater to around 12 lakh customers

• State has already offered land to the group for its proposed ventures

• Detailed project reports for rail, road connectivity are being finalized

Emami Agrotech to invest INR 300 Cr in Haldia facility

Deep Sea Port at Tajpur

• Incorporation of SPV already done

• With capacity to produce 4,200 cylinder p.a. on a single carousel.

Exide to invest INR 700 Cr in Haldia plant • Leading storage battery maker of the country, is planning to make Haldia the hub for its new generation battery project

• Emami Group plans to expand its India’s edible oil business market share • Will invest to expand the refining capacity of its edible oil facility at Haldia, WB

• Proposed deep sea port near Tajpur, Purba Medinipur district to be developed on PPP basis by the State • With Capacity to handle over 50 MMTPA capacity

More Investment Opportunities 12

Upcoming 6 New Theme Townships in West Bengal Government proposes to develop six new Township Projects on Government land. The townships have been selected by the Government based on its strategic importance, feasibility factors and availability of land.

Health and Education City Earmarked for its solitude and location. Also has the potential for becoming new Health Hub of the North East

Dabgram (Teesta) Sports City Sporting activities thrive here making it the sports hub of West Bengal

Industrial Township Recognized for established industrial resources

Geriartric and Wellness Township Baruipur is far from the maddening crowd and in the midst of expanding greens. Ideal location for convalescence

Baruipur (Uttam City)

Dumurjala (Sports City)

Bolpur (Gitabitan)

Asansol (Agnibina)

Kalyani (Samriddhi)

Culture Hub Culture Hub of West Bengal with Shantiniketan and a heritage steeped in literature and music

Analytics City Huge investment potential for setting up industries


Current major players in West Bengal